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MAIN CONTRIBUTORS TO CHANGE


PENSIONER AND BENEFICIARY HOUSEHOLDS

The PBLCI rose 0.5% for the March quarter 2013. The main contributor to the rise was health (+7.6%), mainly due to the cyclical reduction in the proportion of patients who qualify for subsidies under the Pharmaceuticals Benefit Scheme (PBS) and Medicare Benefits Scheme (MBS) at the start of each calendar year. Housing (+0.9%) and alcohol and tobacco (+2.2%) also contributed to the rise.

Food and non–alcoholic beverages (–1.2%) contributed the most significant partial offset, driven by falls in fruit and vegetables.

The PBLCI recorded a larger rise than the CPI (+0.4%) in the March quarter 2013. Pensioner and beneficiary households have a relatively higher proportion of expenditure on health and alcohol and tobacco than the CPI population, both of which rose this quarter.

The PBLCI rose 2.7% through the year to the March quarter 2013 compared to the CPI which rose 2.5% through the year to the March quarter 2013.


EMPLOYEE HOUSEHOLDS

The living cost index for employee households rose 0.2% for the March quarter 2013. The main contributor to the rise was education (+5.5%), mainly due to rises across tertiary education, secondary education and preschool and primary education. Health (+2.7%) also contributed to the rise, mainly due to the cyclical reduction in the proportion of patients who qualify for subsidies under the PBS and MBS at the start of each calendar year.

The most significant partially offsetting fall was recorded for clothing and footwear (–3.9%) which recorded falls for garments, footwear and accessories and clothing services. Furnishings, household equipment and services (–1.2%) also fell largely due to falls in furniture.

The LCI for employee households recorded a smaller rise than the CPI (+0.4%) for the March quarter 2013. Employee households have a relatively lower proportion of expenditure on education and housing than the CPI population, both of which recorded rises this quarter. Further, employee households have a relatively higher proportion of expenditure on clothing and footwear which recorded the largest fall this quarter.

The LCI for employee households rose 1.7% through the year to the March quarter 2013 compared to the CPI which rose 2.5% through the year to the March quarter 2013.


AGE PENSIONER HOUSEHOLDS

The living cost index for age pensioners rose 0.4% for the March quarter 2013. The main contributor to the movement was health (+7.1%), mainly due to the cyclical reduction in the proportion of patients who qualify for subsidies under the PBS and MBS at the start of each calendar year. Housing (+1.2%) also contributed to the rise.

The most significant partially offsetting fall was recorded for food and non–alcoholic beverages (–1.3%) which was mainly driven by falls in fruit and vegetables.

The LCI for age pensioner households recorded the same rise as the CPI (+0.4%) for the March quarter 2013. Age pensioner households have a relatively higher proportion of expenditure on health, which recorded a rise this quarter. Further, age pensioner households also have a relatively higher proportion of expenditure on food and non–alcoholic beverages which recorded a fall this quarter.

The LCI for age pensioner households rose 2.8% through the year to the March quarter 2013 compared to the CPI which rose 2.5% through the year to the March quarter 2013.


OTHER GOVERNMENT TRANSFER RECIPIENT HOUSEHOLDS

The living cost index for other government transfer recipient households rose 0.5% for the March quarter 2013. The main contributors to the rise were health (+8.7%), mainly due to the cyclical reduction in the proportion of patients who qualify for subsidies under the PBS and MBS at the start of each calendar year, and housing (+1.0%), mainly due to rises in electricity and rents.

The most significant partially offsetting fall was recorded for food and non–alcoholic beverages (–1.0%) which was driven by falls in fruit and vegetables. Clothing and footwear (–3.7%) also fell, due to falls recorded in garments, footwear and accessories and clothing services.

The LCI for other government transfer recipient households recorded a larger rise than the CPI (+0.4%) for the March quarter 2013. Other government transfer recipient households have a relatively higher proportion of expenditure on alcohol and tobacco, which recorded a rise this quarter.

The LCI for other government transfer recipient households rose 2.6% through the year to the March quarter 2013 compared to the CPI which rose 2.5% through the year to the March quarter 2013.


SELF–FUNDED RETIREE HOUSEHOLDS

The living cost index for self–funded retiree households remained unchanged for the March quarter 2013. Increases recorded for health (+3.2%), alcohol and tobacco (+1.7%), insurance and financial services (+2.2%) and housing (+0.7%) were offset by falls in recreation and culture (–0.8%), food and non–alcoholic beverages (–1.0%), clothing and footwear (–3.5%) and furnishings, household equipment and services (–1.2%).

The LCI for self–funded retiree households remained unchanged compared to a rise in the CPI (+0.4%) for the March quarter 2013. Self–funded retiree households have a relatively lower proportion of expenditure on housing which recorded a rise this quarter. They also have a relatively higher proportion of expenditure on recreation and culture which recorded a fall this quarter.

The LCI for self–funded retiree households rose 2.3% through the year to the March quarter 2013 compared to the CPI which rose 2.5% through the year to the March quarter 2013.

Percentage change, Commodity group – December Quarter 2012 to March Quarter 2013
	Pensioner and beneficiary LCI	Employee LCI	Age pensioner LCI	Other government transfer recipient LCI	Self–funded retiree LCI	Consumer Price Index (CPI)
Weighted average of eight capital cities	%	%	%	%	%	%
Food and non–alcoholic beverages	-1.2	-0.7	-1.3	-1.0	-1.0	-0.8
Alcohol and tobacco	2.2	1.6	1.6	2.5	1.7	1.6
Clothing and footwear	-3.6	-3.9	-3.5	-3.7	-3.5	-3.9
Housing(a)	0.9	0.9	1.2	1.0	0.7	1.2
Furnishings, household equipment and services	-1.0	-1.2	-1.0	-0.9	-1.2	-1.3
Health	7.6	2.7	7.1	8.7	3.2	3.0
Transport	0.5	0.5	0.6	0.6	0.3	0.5
Communication	0.0	0.0	0.0	0.0	0.0	0.0
Recreation and culture	-0.5	-0.8	-0.7	-0.4	-0.8	-0.8
Education	5.3	5.5	5.4	5.3	5.6	5.7
Insurance and financial services(b)	0.9	0.4	1.7	0.6	2.2	0.7
All groups	0.5	0.2	0.4	0.5	0.0	0.4
(a) House purchases are included in the CPI but excluded from the other indexes.
(b) Includes interest charges and general insurance, except for the CPI. Interest charges are excluded from the CPI and general insurance is calculated on a different basis.